Apple Pay has grown significantly since its launch one year ago. A study found that 91% of Apple Pay users had made an in-store purchase using their smartphone to pay and 67% had made an in-app purchase. The top retailers for in-store purchases using Apple Pay were McDonald's, Macy's, and Subway. The top retailers for in-app purchases using Apple Pay were Apple, Target, and Nike. While competition from other mobile wallets may seem like a negative, it will actually drive more merchants to upgrade their payment terminals to support all mobile wallet technology and lead to more sales overall. Apple Pay acceptance has expanded from over 200,000 merchants at launch to over 1 million merchants today and will

1. What’s Next for Apple Pay®

2. • Apple Pay® recently celebrated its first birthday and has
paved the way for adoption of mobile wallets. When first
released, only 12 percent of iPhone users had
compatible models to use the service.
• Now, approximately 47 percent of iPhones have Apple
Pay compatibility, which is expected to grow even more
with the latest iPhone 6s model release.

3. • Apple Pay has already reached many milestones, but
how is it expected to pan out during 2016? Let’s take a
further look at what’s next for Apple Pay this year.

4. • Phoenix Financial Services examined which retailers
support Apple Pay and how often their customers were
operating it. They discovered that 91% of Apple Pay
users made an in-store payment using their stored credit
card within their smartphone and 67% used an in-app
transaction.
• Brick-and-mortar merchants had the most traffic of
Apple Pay credit card users.
More In-Store and In-App Purchases with Merchants

5. • Here are the top retailers that accepted at least one in-
store Apple Pay transaction:
• McDonalds: 38% of Apple Pay users
• Macy’s: 36% of Apple Pay users
• Subway: 32% of Apple Pay users
Most In-Store Purchases

6. • Here are the top retailers that accepted at least one in-
app (mobile) Apple Pay transaction:
• Apple: 43% of Apple Pay users
• Target: 36% of Apple Pay users
• Nike: 29% of Apple Pay users
Most In-App Purchases

7. • “The push toward enabling in-app mobile wallet
transactions is critical to building volume in a nascent
market where the number of acceptance locations is
relatively small but growing and the incidence of
reported friction at the point of sale is high,” says Greg
Weed, director of card research at Phoenix Marketing
International.

8. • One may think added competition against Apple Pay,
such as Android Pay and Samsung Pay, would be a
negative sign of what is to come. However, more major
players are actually a positive for the future success of
Apple Pay.
• Added rivalry will assist in getting merchants to upgrade
their payment terminals to support mobile wallet
technology as a whole and ultimately lead to more sales.
More Rivalry Will Be Beneficial

9. • At launch, Apple Pay was accessible at over 200,000
merchants within the U.S. Fast forward to today, and
Apple Pay is supported at over a million U.S. stores that
have the capability to accept contactless payments.
• Added rivalry will assist in getting merchants to upgrade
their payment terminals to support mobile wallet
technology as a whole and ultimately lead to more sales.
More Expansion to Other Countries

10. • “We’re off to a great start and we are seeing continued,
double-digit monthly growth in Apple Pay transactions
since launch,” Apple said in an e-mailed statement.
“And our customers love Apple Pay – a recent survey
found satisfaction rates of 98 percent. Merchants love it
too and tell us that the added security and convenience
Apple Pay brings their customers is a huge benefit.”

11. • Other countries are beginning to gain support so they
too can begin accepting Apple Pay. The UK launched
Apple Pay in July of 2015, and it has been an easy
transition for merchants as most already had the
infrastructure to accept it.
• In fact, over 69 million contactless terminals were already
implemented in the UK when Apple Pay was launched.
More Expansion to Other Countries

12. • “The pace of growth we are seeing in contactless is
getting ever faster as we rely less and less on cash.
Consumers enjoy the speed and convenience of tapping
to pay. We expect this upward trend to persist with
consumers continuing to migrate to contactless card
payments and increasingly to mobile payments, as we
work with partners such as Apple to enable more
convenient ways to pay,” said Mark Barnett, President of
MasterCard UK and Ireland.

13. • Apple Pay has led the way for mobile wallets and will
continue to increase in acceptance in the future.
Consumers will begin utilizing Apple Pay for both in-
store and in-app purchases with merchants and the
addition of other key players in the mobile wallets
spectrum will push more merchants to adopt payment
terminals that accept mobile wallets.
• Other countries will also begin supporting Apple Pay, as
it continues to spread around the world in popularity.

14. Looking to process Apple Pay transactions?
Contact First American Payment Systems today and get started